EXCLUSIVE-"Avatar" effects house weighs Digital Domain bid

By Ronald Grover

Sept 11 (Reuters) - Prime Focus World, which created the
special effects for "Avatar," "Harry Potter" and other Hollywood
blockbusters, is contemplating a bid for Digital Domain Media
Group, which filed for bankruptcy protection on Sept. 11,
according to a person with knowledge of its interest.

Digital Domain, which was started in 1993 by superstar
director James Cameron and the late special effects guru Stan
Winston, said in a statement it agreed to sell most of its
assets to private equity firm Searchlight Capital Partners
"subject to the receipt of higher and better offers and court
approval."

Prime Focus was started by Bollywood veteran Namit Malhotra
in the late 1990s, the company says on its website, and claims
its Mumbai facility is one of the one of the busiest special
effects and 3D conversion facilities in Asia. It also has
offices in Los Angeles and London.

A spokeswoman for Prime Focus was not available for comment.
Digital Domain did not make an executive available.

Among Prime Focus' projects, the special effects house
created the "holotable" in Avatar at which star Sam Worthington
brings up three-dimensional holograms, and converted George
Lucas' "Star Wars: Episode One - The Phantom Menace" from 2D to
3D, it says on its site.

The company delivered more than 650 special effect shots for
"Dredd," a science fiction action film being released by Lions
Gate on Sept. 21, and did the conversion to 3D for
"Frankenweenie," Tim Burton's gothic animated film that Walt
Disney Co (DIS.N) will release on Oct. 5.

Prime Focus built its company through acquisitions in the
past, and in 2007 purchased Post Logic Studios to expand to Los
Angeles. In May, it named Massoud Entekhabi, a founder of
venture firm Zenith Equity Partners, as its chief financial
officer.

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